Australia's Mobile Decade
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AUSTRALIA’S MOBILE DECADE 10 YEARS OF CONSUMER INSIGHTS INTO MOBILE USE AND RECYCLING: 2005-2015 Managed by the Australian Mobile Telecommunications Association FOREWORD Over the past decades, Mobile phones are enabling in so many ways, and yet as one of the mobiles and smart symbolic products of 21st century life, they also personally connect us to the challenges for people and planet which are presented by our phones have evolved to consumption and use of technology. become a ubiquitous part This can range from the individual need for digital down-time, to the of modern life; helping challenge of poor labour and environmental practices along the supply us speak to each other, chain, to the need to overcome both resource scarcity and growing rates of find our way, access e-waste generation. and share images and Effective product stewardship is an essential part of transitioning ourselves information for both as consumers, and collectively as a society, to sustainable patterns of EXECUTIVE work and leisure. consumption and production. As a voluntary, not-for-profit industry initiative, MobileMuster is to be commended in this regard on a decade of leadership in product stewardship. The importance of responsible consumption and production has been SUMMARY recently highlighted through its inclusion as one of the seventeen United Nation’s Sustainable Development Goals. Responsible consumption and production, and indeed responsible prosperity more generally, involves not only technical and policy innovation, but also deeper insights into consumer behaviour. This spans patterns of ownership, awareness of how to recycle, Australians have embraced mobile technology to considering how to overcome hoarding behaviours which lock-up valuable resources by storing mobiles in bottom drawers instead of recycling. since 1987 when the first official call was made using an analogue mobile phone. The relentless Ten years of research and consumer education by AMTA presented in this report, provides a unique body of knowledge that can inform and lead growth in mobile services and evolution from bulky the ongoing evolution of stewardship for mobile telecommunications. voice-only handsets to today’s broadband-enabled Customers, industry, research and government must work together to smartphones represents a global phenomenon. move beyond the ‘buy and throw’ mentality to foster a circular economy philosophy of take-make-recreate. Managing mobile phones is complex and dynamic. It’s set to become an even more exciting field as the digital economy continues to enable and disrupt. For the last 10 years the Australian Mobile Telecommunications Association This is precisely why the reflective and transparent approach in this report is (AMTA) has commissioned annual market research1 into how Australian so valuable for future policy, program management and sectoral innovation. consumers use and dispose of their mobile phones and why they do or don’t recycle. The research has provided critical intelligence in shaping, The carriers and handset manufacturers participating in MobileMuster directing and monitoring the performance of the industry’s recycling have invested wisely in the creation of an impressive take-back and program – MobileMuster. recycling program – I commend this report to you and trust it strengthens momentum in pursuing both recycle-ready product designs and business Established voluntarily in 1998 by the AMTA and its members, the Mobile models which showcase opportunities for Australian leadership in the Phone Industry Recycling Program (MPIRP) now known as MobileMuster, circular economy. aims to keep old mobiles out of landfill and ensure that all components including accessories are recycled to the highest environmental standards. Associate Professor Damien Giurco In the world of product stewardship MobileMuster is a unique program. Research Director Unlike many schemes across the globe it is not governed by regulation or UTS Institute for Sustainable Futures enforced by mandatory laws. It is a voluntary initiative of manufacturers Leader, Wealth from Waste Cluster 1 Consumer market research data and carriers who have chosen to work together. In May 2014 MobileMuster commissioned annually by the AMTA was accredited as the first voluntary product stewardship scheme under the since 2005. Federal Government’s Product Stewardship Act 2011. Poor functional performance2 has been the primary reason for replacing More people are RECYCLING PERSONALITIES Financial incentives, awareness and access continue to be the three a phone for many years. However, when there is a significant change or main drivers which encourage people to recycle, with personal financial aware of how, why and Certain social themes and factors improvement in technology, as in the case of the smartphone, a very strong rewards continuing to be the primary motivation. While MobileMuster has are also relevant within the context desire for the latest technology becomes the overwhelming driver for consumers. where to recycle with raised awareness and made recycling widespread and very accessible, of personal motivation and key This has been the case in Australia from 2010 to 2014 with the release of the altruistic incentives appear to be becoming less of a driver in recent years awareness of mobile drivers where it appears from the iPhone 4 in July 2010 where imports peaked at 13.3 million in 2010/11. as a way of encouraging people to recycle their old phones. phone recycling growing research that there are essentially four recycling personality types: As the rate of technology change slows however, so do consumers reasons from 46% to 79% The Starship Foundation in New Zealand recently decided collecting and for replacing their phone. Seeking the latest technology is now no longer reselling phones was no longer an effective fundraiser as more people the primary reason for buying a new phone. Similarly more people are are holding onto their smartphones for longer, selling them or passing starting to keep their current phone for two or more years. them on to family and friends. This demonstrates the supply and value of phones received by the Foundation to resell and raise funds has In terms of what people do with their old phones, there have been some THOSE THAT WILL diminished over time.4 significant shifts in behaviour over the past ten years. More people are aware RECYCLE AS SOON of how, why and where to recycle with awareness of mobile phone recycling AS THEY KNOW WHY, Effective advertising and promotions has a direct impact on awareness growing from 46% to 78% peaking at 84% in 2011. More people are WHERE AND HOW and engagement of consumers, and if promotions are not maintained recycling with collections increasing from 42 tonne per annum to 74 tonne to a certain level, awareness will reduce and collection rates will drop. in 2014-15, peaking at 122 tonne in 2008/09 and the annual available This is especially the case when people are purchasing a new phone, as collection rate growing from 14.1% to 53.1% peaking at 53.2% in 2012-13. this was the most common event or catalyst that prompted consumers to recycle. As a result it is vital that retailers and manufacturers consistently THOSE THAT NEED A remind customers around the time of purchase as to the why, where Less people are disposing of their phones REMINDER AND AN and how they can recycle or reuse their old phones in order to maximise into landfill, decreasing from 9% to 2%. ADDITIONAL REASON collection and recycling rates of unwanted or redundant phones. TO RECYCLE Access to nearby drop-off locations (i.e. proximity), and in particular Similarly, with the recent growth of online cash for phone and trade-in such as seeing something or high levels of convenience is also an important factor, with most people programs, more people are selling or trading in their phones as a way of someone benefiting from the saying they would likely recycle at the local supermarket and Australia recovering some financial return, up to 6%. phone being recycled – e.g. Post stores in addition to mobile phone retailers. However, having cash to a charity, planting Consumer desire however, to keep old phones remains unchanged (60% collection points in these locations can be very challenging. Currently trees, or being reused by Australia Post only distributes MobileMuster recycling satchels. even if not working). As a result the number of unused phones stored away people in need in homes has grown from 12 million to over 22.5 million in the past decade. Collecting phones at local council drop off days or with TVs and computers is least preferred. The possibility however of recycling This equates to nearly one phone for mobile phones along with batteries, globes or other small electronics, every person in Australia. as in the case of the City of Sydney offering integrated collection THOSE THAT WANT A units located in libraries, does improve convenience and reflects a FINANCIAL REWARD community-friendly approach to maximising collection opportunities. For many people the reason for keeping old phones has been a perceived some may be happy with a need to keep a backup for possible future use. But with the advent of the voucher or discount on their Technological developments have had both positive and negative smartphone more people are citing having personal information on a mobile phone bill, others impacts on mobile phone recycling in Australia. They have driven rapid phone and data security concerns, as their reason for keeping their phone. want cash consumption of resources as functionality is enhanced (e.g. introduction This pattern of behaviour also reflects the vast amount of information of the smartphone) and made past technology redundant as networks that can now be stored on phones. This hoarding mentality is a worldwide are upgraded (e.g. CDMA). They have also improved resource efficiency phenomenon and typically very common. An estimated 125 million phones through miniaturisation, dematerialisation and use of recycled content.